Guide to Setting Up an Offshore Merchant Account in Regulated US States.
PAYCLY Merchant Services
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Introduction
A merchant account is one of the critical things that an online business operating in a heavily regulated US state like New York or California cannot do without an account that is linked to a credit card payment gateway since it is forbidden by the law. This may come to you as a surprise but did you ever find out that there is a way to still be able to accept the Visa, Mastercard, and other major credit card even though you are located in one of these states? The overseas merchant account could turn out to be what you were looking for.
In this thorough guide, we will be going into detail about the procedure for opening an offshore account, the benefits of opening one, and the things that need to be considered before opening one. In conclusion, you will already know whatever you need to make that decision if an offshore account is right for you and you will be able to register and start accepting credit card payments even if you live in a country against it.
Let's dive in! #OffshoreMerchantAccounts #CreditCardProcessing #EcommerceTips
What is an Offshore Merchant Account?
An offshore merchant account is an account on the merchant services, which is opened through a provider of merchant services outside of the US. This way US-based firms including those operating within the regulated areas can easily conduct businesses as usual while also transacting credit card payments without being part of the hard regulations of their local area of operations.
Offshore merchant accounts are a popular solution for industries like #cannabis, #gambling, #adult_content, #payday_lending, and #multi_level_marketing that face restrictions in the US. But they can benefit any business owner looking to accept cards without dealing with the red tape.
The main offshore merchant account provider hubs are located in Panama, Curacao, Malta, and Gibraltar. Accounts are regulated by international payment brands like Visa , 萬事達卡 , 发现金融服务公司 , and American Express through these offshore banks and processors rather than US regulations.
Benefits of an Offshore Merchant Account
There are several key advantages to going offshore with your merchant account:
- Avoid strict US state laws - As mentioned, offshore accounts sidestep regulations around industries, surcharging, and other restrictions that may apply domestically.
- Lower rates and fees - Offshore providers typically offer more competitive pricing than US processors. Rates can be 1-3% lower on average.
- Faster application approval - It's easier to qualify for an offshore account since you don't have to meet as many compliance requirements. Approvals only take 1-2 business days.
- Acceptance globally - Once approved, you can accept payments from customers worldwide rather than limiting it to just the US market.
- Anonymity - Your business information and ownership stay private. Onshore processors require extensive KYC/AML checks.
- Fewer chargebacks - International cardholders tend to dispute charges less often than US consumers.
Things to Consider with an Offshore Account
While offshore accounts provide many advantages, there are also some factors to be aware of:
- Currency exchange fees - Deposits are in foreign currency so you'll pay conversion rates on deposits and withdrawals.
- Slightly higher fees - Overall costs are still lower than domestic but individual fees like statement fees may be a tiny bit higher.
- Customer service hours - Support teams work in different time zones so availability won't be 24/7.
- PCI compliance - You must still adhere to payment security standards to protect customer data.
- Tax implications - Profits made through the account may be subject to corporate taxes in the offshore country. Consult a tax pro.
- Banking restrictions - It's harder to link the account to a domestic business bank account for deposits and withdrawals. Wire transfers are usually required.
How to Set Up an Offshore Merchant Account
Setting up an offshore merchant account takes just a few simple steps:
1. Choose a Provider - Research top-rated providers like PAYCLY Merchant Services , Payoneer , or Secure Payment Systems that cater to US merchants.
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2. Apply Online - Fill out a streamlined application providing basic business/owner details. No tax IDs or extensive documentation are needed.
3. Verify Identity - Upload ID like a passport or driver's license for security. A short video call may also be required.
4. Get Approved - If all checks out, expect approval within 1-2 business days with your merchant ID and gateway login.
5. Integrate Payments - Connect the account to your website or shopping cart to begin accepting payments right away.
6. Start Selling - Process orders, handle customer service, and receive deposits in 1-3 business days minus any fees.
7. Manage Funds - Transfer balances to your local bank account by international wire for a small fee when needed.
And with that, you're all set to accept credit cards for your business no matter where you're located! #EntrepreneurTips #EcommerceBusiness #CreditCardProcessing
Frequently Asked Questions
Here are some other common questions about offshore merchant accounts:
Q: Is my business information/ownership kept private?
A: Yes, offshore providers do not require extensive KYC/AML checks so your business stays anonymous.
Q: What payment methods can I accept?
A: The major credit cards like Visa, Mastercard, Discover and American Express. You can also accept alternative payments like PayPal.
Q: How do I transfer funds to my local bank account?
A: Via international wire transfers which typically take 2-5 business days to clear and cost $25-50 per transaction.
Q: What if I need to contact customer support?
A: Support teams work international hours so response may be delayed if contacted overnight. But email support is usually 24/7.
Q: Am I still PCI-compliant with an offshore account?
A: Yes, you must still adhere to payment security standards for protecting customer data even with an offshore provider.
Q: How much can I make through an offshore account?
A: There's no limit as to how much you can process. High-volume merchants routinely handle 6 and 7 figures per month through offshore accounts.
Conclusion
In summary, an offshore merchant account provides a hassle-free solution for US businesses of all sizes to accept major credit cards, regardless of location or industry restrictions. The application process is simple, approval is fast, and costs are lower than domestic options.
By choosing a top-rated offshore provider, business owners gain access to a global customer base while keeping operations private. As long as you diligently protect customer information according to PCI standards, an offshore account is a secure and legitimate way to boost sales by adding convenient payment options.
If you're ready to get started, research providers, apply for an account, and within days you'll be equipped to accept payments and watch your business grow. Don't let your location or industry hold you back from accepting credit cards. An offshore merchant account may be the perfect solution.
#OffshoreMerchantAccounts #CreditCardProcessing #EcommerceBusiness #EntrepreneurTips